Advertising Tax Goes Beyond New York State

Advertising tax law first became widespread news when New York state passed such legislation.

Basically, if a merchant (who is located outside of New York state) has at least one affiliate in New York state then New York state can charge the merchant for sales tax of all sales in New York state.

To avoid such tax by New York state, some merchants no longer accept affiliates located in New York state. One such merchant is Amazon.com, which terminated the affiliate accounts of its affiliates located in New York state. The New York Post has dubbed the advertising tax the "Amazon Tax".

Several states have already passed advertising tax law:

• New York
• North Carolina
• Rhode Island

And several other states are proposing legislation that could require certain advertisers to charge sales tax on Internet retail sales or tax via other means.

For more information about advertising tax and its current status in your state, check out these resources ...

• Performance Marketing Association (PMA) > Advocacy > Legislation


• CJ.com News & Events > Internet Retail Tax

And these blog posts provide more details about the advertising tax ...

• State Tax Laws Challenging Online Sellers
• Raise Your Voice on Online Merchant and Advertising Taxes

Note: The above information is not tax or legal advice, and it is provided as a courtesy for your convenience.